Casino Cosmopol’s potential closure comes after a state memorandum, which is supported by members of Sweden’s Conservative Coalition government as they underlined a policy that the Swedish State should “no longer be involved in hard gambling.” 

The political coalition also questioned whether Svenska Spel should be afforded the privilege to operate a loss-making casino unit.

Whilst Spelinspektionen raised no objection to the closure of Casino Cosmopol, it did highlight the warnings of the Swedish Police regarding certain land-based consumers becoming exposed to illegal gambling. Yet, the extent of exposure to illegal gambling remains uncertain.

The inspectorate detailed that additional resources will be essential if the casino is closed in order to continue combating the illegal market effectively. 

It stated: “Spelinspektionen has acted as an expert in a handful of cases in recent years where prosecutions have been brought. Although the number of such cases is relatively few today, the authority believes that law enforcement authorities are increasingly paying attention to illegal gambling.”

In the first half of the year, Svenska Spel closed loss-making Casino Cosmopol venues in the cities of Malmö and Gothenburg, which together reported annual losses of SEK 35m (€3m).

Svenska Spel currently operates one Casino Cosmopol location in Stockholm. If the proposal is approved, Casino Cosmopol Stockholm would be required to close by 1 January 2026, affecting approximately 200 jobs.

The memorandum contained further proposals that state lotteries should no longer have any limitations with regards to jackpots and prizes offered.

Meanwhile, providing feedback on AML safeguards for gambling, Spelinspektionen hopes to enhance its role in anti-money laundering efforts, consistent with its past requests, stressing the need for regular data collection in line with future European Union and international reporting requirements.

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In addition, Johnson noted that opportunities have now been created for the Swedish operator to “invest in transformation, strengthened responsible gaming work and investments that create growth”.

Casino Cosmopol closures impact overall revenue

Publishing its interim report, Svenska Spel declared an overall Q2 net gaming revenue of SEK 1.87bn (€161.8m), down by five per cent year-over-year (Q2 2023: SEK 1.97bn).

The operator noted that the decrease was partly due to its Casino Cosmopol business only having one casino open in comparison to three the previous year following the closure of casinos in Malmö and Gothenburg, resulting in a SEK 90m reduction. 

Its online unit improved by eight per cent in comparison to the same period last year, accounting for 59 per cent of the total revenue earned during the quarter (2023: 52 per cent).

In addition, the operator stated that the strengthening of responsible gaming measures had “a negative impact on revenues for all business areas”, but a positive impact on healthy revenue.

Svenska Spel will start reporting on its share of healthy revenues at the end of August, after which the figure will be included in interim reports to show its sustainability and transparency.

The group’s operating profit for the quarter was SEK 640m, up 17 per cent YoY (2023: SEK 550m) following restructuring between October 1, 2023 and March 31, 2024, which resulted in lower costs. Operating margin rose to 34 per cent (2023: 28 per cent) due to the lower costs, while group profit grew by five per cent YoY to SEK 499m (2023: SEK 474m).

For the first half of the year, the operator’s net gaming revenue has fallen by three per cent YoY to SEK 3.83bn (2023: SEK 3.94bn), due to it being “heavily impacted by changes in the casino business”. 

H1 operating profit stood at SEK 950m, down 18 per cent YoY (2023: SEK 1.16bn), impacted by “non-recurring costs of approximately SEK 375m for the closure of two casinos, the provision for an administrative fine and the reorganisation of Svenska Spel”.

Profit for the group in H1 was SEK 794m, down 19 per cent in comparison to the same period the previous year (2023: SEK 981m).

Johnson: Starting to see restructuring results

Johnson, who took over as President and CEO in June, commented: “We are now starting to see the results of the restructuring we have implemented at Svenska Spel. We have conducted a review of the organisation, working methods and costs. We have subsequently carried out a reorganisation of Svenska Spel with a new organisation in place from 1 April. 

“We have also closed down our casinos in Malmö and Gothenburg. This has led to lower costs, improved earnings and a strengthened operating margin in the second quarter. It gives us an opportunity to invest in transformation, strengthened responsible gaming work and investments that create growth.”

Svenska Spel reported that Sport & Casino net gaming revenue in Q2 fell by two per cent YoY, but the European football championship had a positive impact on revenues in June. A new sports betting platform Oddset was launched in May as well.

Tur net gaming revenue increased by three per cent YoY with Eurojackpot being a growth driver, but the operator did note that efforts to increase Triss sales have produced a “positive effect on revenues”.

Net gaming revenues from Casino Cosmopol operations in Q2 fell by 72 per cent YoY as the Stockholm casino was the only one operational. However, Svenska Spel did state as well that responsible gambling measures did impact revenue.

“We are now starting to see the results of the restructuring we have implemented at Svenska Spel.”

Svenska Spel President and CEO Anna Johnson

For its Vegas business, net gaming revenue dropped by 24 per cent YoY due to a “tough economic situation for business partners and strengthened gaming responsibility”.

Svenska Spel highlighted that it simplified and digitised the interaction between customers and agents during the quarter through “channel-independent gaming accounts in stores” which has resulted in smoother payouts and reduced cash handling.

For lottery operations, the operator distributed 97 million winnings in number games and lotteries in Q2 with a total value of more than SEK 307m. A new campaign lottery – Triss Semestervinsten – was launched ahead of the summer too.

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The amendment from the Ministry of Finance has been proposed due to Casino Cosmopol’s profitability difficulties and that liquidation is not expected to have any major impact on illegal gambling.

Casino Cosmopol operator Svenska Spel has stated that it shares the government’s assessment of land-based casinos and that it will do everything possible to support its around 200 employees at its last Casino Cosmopol location in Stockholm.

Erik Strand, President and CEO of Svenska Spel, stated: “The movement from gambling in land-based casinos to gambling online accelerated after the reregulation of the gambling market in 2019 and the subsequent pandemic when Casino Cosmopol remained closed. 

“Our review of Casino Cosmopol has taken place in close dialogue with our owner. We share the assessment that it is no longer possible to run Casino Cosmopol profitably.”

Back in February, Svenska Spel closed its Casino Cosmopol venues in Gothenburg and Malmö due to declining profitability and visitor numbers as more people played online. Casino Cosmopol in Sundsvall closed in 2020, so only the Stockholm location remains.

If the proposed amendment to the law is passed and removes the requirement for land-based casinos from the Gaming Act, it will close the Casino Cosmopol Stockholm, affecting around 200 employees.

If passed, the amendment would come into force on January 1, 2026.

Ola Enquist, CEO of Casino Cosmopol, noted: “Although we share the government’s assessment, it is emotional to take part in the bill. If it is adopted, it means that our last casino is closing and that an era is over. This of course affects all of us who work at Casino Cosmopol.

“As an employer, we will do everything we can to support our employees. We will also stay open as usual and continue to take care of our guests.”

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Following the conclusion of union negotiations, the Swedish operator has stated that the casinos will be open until February 24, after which they will remain closed. These closures will affect around 100 employees in Gothenburg and 80 in Malmö.

Svenska Spel noted that profitability has been a struggle for Casino Cosmopol for several years as more people have chosen to play online, resulting in visitor numbers dropping.

A series of measures have been taken to try and improve revenue and reduce costs, but the operator has ultimately decided to close and dismantle the casinos in Gothenburg and Malmö.

Casino Cosmopol was commissioned by the Swedish government in 1999 to offer land-based casino gaming and establish international casinos in the country. 

A wholly owned subsidiary of Svenska Spel, the first Casino Cosmopol opened in Sundsvall in 2001 (closed in 2020), followed by Malmö that same year, Gothenburg in 2002 and Stockholm in 2003.

“For over 20 years, Casino Cosmopol has offered the citizens of Gothenburg and Malmö an international casino experience, which is now unfortunately coming to an end,” commented Ola Enquist, CEO of Casino Cosmopol.

“Until we close, my colleagues and I hope that our guests will want to visit us one last time so that together we can have a nice ending for the casino.”

Later this year, Svenska Spel will undergo a leadership change as Anna Johnson will replace Patrik Hofbauer as CEO in June 2024.

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As Patrik Hofbauer, President and CEO, stressed an ongoing ambition of “simplifying and enhancing the gaming experience for customers”, the group reported that net gaming revenue through Q2 remained largely stable at SEK 1.97bn (2022: SEK 1.963). Operating profit for the group increased three percentage points to SEK 550m (2022: SEK 531m).

“Increased profitability and a stronger operating margin characterise the second quarter for the Svenska Spel Group,” commented Hofbauer. 

“This despite the result being negatively affected by challenges for Casino Cosmopol and the slot machines Vegas. We continue to simplify and improve the gaming experience for our customers and our focus on sustainable gaming has a positive effect. 

“The proportion of healthy revenues and the number of sustainable customers increase, while risk gambling decreases.”

The group’s land-based casino enterprises, situated in Malmö, Gothenburg and Stockholm, and Vegas slots segment, saw NGR drop 13 per cent as operating loss decreased a further SEK 29m to SEK 52m.

This is primarily due to increased online competition, which Svenska Spel noted has led to fewer guests and lower revenue, with strengthened measures regarding AML and duty of care also cited as contributing to the drop. 

The Casino Cosmopol and Vegas segment is now undertaking a restructuring, which includes measures to reduce costs.

The Tur lottery business witnessed NGR fractionally increase by one per cent, with the Eurojackpot reportedly continuing to drive revenue via record breaking sales.

Elsewhere, Svenska Spel’s online casino and sports betting division’s NGR increased six per cent, which the company put down to overall igaming growth, an uplift in customer numbers and solid wagering margins. 

Furthermore, Svenska Spel reported that a Q1 trend of reduced risky gambling has been maintained through the second quarter of the year. 

Due to the implementation of enhanced responsible gambling measures, Hofbauer noted a positive effect on seven out of ten customers following company intervention regarding potentially problematic play. 

For the year-to-date, NGR increased one per cent to SEK 3.94bn (2021: SEK 3.89bn), with operating profit up three per cent to SEK 1.16bn (2022: SEK 1.12bn).

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Gaming Innovation Group

Michael Ahearne, SkyCity Entertainment Group’s Chief Executive Officer, issued an immediate resignation as a board member of Gaming Innovation Group earlier this week.

He initially joined the board on April 1, 2022, after the Auckland, New Zealand, headquartered casino and entertainment operator became a GiG shareholder in connection with the acquisition of Sportnco.

“SkyCity is represented in GiG’s nomination committee and will participate to propose a board composition to the annual meeting of shareholders in May that has an adequate breadth of competence, experience and background and will contribute to a continued positive development for GiG,” company statement said.

ComeOn Group

ComeOn Group, the B2C igaming subsidiary of Cherry Gaming, has announced the promotion of Sherwin Jarvand to Chief Data Officer.

The appointment sees ComeOn enlarge its c-suite executive leadership team, with Jarvand having formerly served as Director of Customer Engagement since joining the company in 2023. In the new role, hewill be tasked with reorganising the data strategy and intelligence of ComeOn’s brands and units.

He will report directly to ComeOn CEO Juergen Reutter, who remarked: “Sherwin has an outstanding track record in the industry, and I am sure that he will further intensify our efforts around personalisation and player engagement enablers for us to continue delivering an exciting and safe entertainment experience to our customers.

“To add, I am also very proud that we have promoted talent from within, which is something we always encourage from a people strategy perspective here at ComeOn.”

Fontainebleau

Brett Mufson has been confirmed as President and Chief Executive Officer of the yet-to-open Fontainebleau Las Vegas casino resort.

In the role, Mufson will be responsible for leading the development of one of the construction project as the resort aims to introduce “the next generation of Las Vegas’ luxury hospitality industry; leading every detail of design, operations, and guest experience”.

Fontainebleau Development has previously confirmed that it is targeting the fourth quarter of 2023 for the grand opening of the 67-story casino and resort.

“Brett and I have spent years together as partners and he is a brilliant leader whose expertise provides us an extraordinary amount of confidence to build our brand with unparalleled consistency and focus,” noted Jeffrey Soffer, Fontainebleau Development’s Founder, Chair and Chief Executive Officer. 

“After years of critical contribution to the overall Fontainebleau Development brand and the building of Las Vegas, we are now poised to successfully run our entry into the Las Vegas market and establish our legacy on the Strip.”

Casino Cosmopol

Svenska Spel’s Casino Cosmopol has appointed Ola Enquist as CEO of the division, a position that he will take up no later than June 2023.

This will see the current Chief Operating Officer of First Camp, a Scandinavian camping group, become a part of the management team at Svenska Spel and report directly to Patrik Hofbauer, president and CEO of Svenska Spel.

“I am very happy to welcome Ola Enquist as the new CEO of Casino Cosmopol and business area manager for Casino Cosmopol & Vegas,” commented Hofbauer.

“His experience from, among other things, the hospitality industry and retail will be valuable in developing our business within land-based casinos and ATMs. “Ola also has solid leadership skills from leading positions in business, as well as from his time as a professional officer.”

Continent 8 Technologies

Continent 8 Technologies has begun 2023 with pair of fresh hires amid a continued aim of expanding on a global scale from the group’s current more than 90 locations across four continents.

This has seen Randy Alessio and Nigel Renouf both join as Regional Sales Directors and will be responsible for managing existing customer relationships and helping to drive the group’s international customer expansion plans in core markets including Europe and the Americas.

Brian Koh, Chief Commercial Officer at Continent 8 Technologies, stated: “Randy and Nigel are extremely experienced, knowledgeable specialists. Our new hires augment our commercial team which comprises the highest calibre of talent.

“While we are focused on expanding the business, we go to great lengths to ensure that our customers continue to receive the unrivalled service and support that we have built our name on. Randy and Nigel will help us to achieve both of these goals.”

Mount Airy Casino Resort

Pennsylvania’s Mount Airy Casino Resort has named Ben Koff as Chief Operating Officer and General Manager, pending approval by the Pennsylvania Gaming Control Board.

In his new role, he will manage all aspects of the casino and resort’s operation, including gaming, guest services, human resources, financial performance and sales and marketing. 

In a more than 16 year career within the industry, Koff has worked for companies including Caesars Entertainment, Golden Nugget, Carnival Corporation, sbe Entertainment Group and, most recently, the Scarlet Pearl Casino Resort in Mississippi.

“Ben’s wealth of expertise in the gaming and hospitality industries, coupled with his passion for exceptional service, make him an invaluable asset to lead our executive team,” said Lisa DeNaples, Mount Airy Owner and Managing Trustee. 

“We are pleased to welcome Ben to the Mount Airy Team and look forward to all he will accomplish as Chief Operating Officer and General Manager.”

The post ComeOn, GiG and Casino Cosmopol: on the move appeared first on CasinoBeats.

However, this performance through the three months ending March 31, 2022, was a decline of 7.86 per cent from the SEK 7.01bn (£567.13m) scored through the final three months of 2021, which was also the best quarterly performance of the past year.

Dissecting the year’s final quarter performance in more detail, online betting and gaming increased to SEK 4.16bn (2021: SEK 3.92bn), which represents a slight decline quarter-on-quarter from SEK 4.18bn (£338.17m).

Svenska Spel’s lottery and Vegas slots reached revenue of SEK 1.29bn (£104.36m), which represents a decline of 4.56 per cent year-on-year from SEK 1.35bn (£109.21m) and 30.62 per cent QoQ from SEK 1.68bn (£135.91m).

The reopened Casino Cosmopol, that resumed activity in July 2021 after being closed from March 29, 2020, finished the quarter at SEK 102m (£8.25m), which represents drops from the SEK 132m (£10.68m) and SEK 144m (£11.65m) generated through the final two quarters of the past year.

Charitable lotteries’ dropped a little over three per cent to SEK 863m (2021: SEK 889m), with restaurant casinos closing the period down 37 per cent to SEK 39m (2021: SEK 62m). 

At the end of the first quarter of the year, the regulator reports that approximately 73,000 were suspended for gambling via Spelpaus.se, which represents an increase of six year quarter-on-quarter.

In March 2022, 91 companies had active licences on the Swedish market, with 66 of these being for betting and/or commercial gaming online.

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The comments come following the reopening of the group’s land-based Casino Cosmopol businesses in Stockholm, Gothenburg and Malmö, on July 7, following 465 days of mandated closure due to the COVID-19 pandemic.

This was followed up on September 29 with the lifting of restrictions that were still in place, meaning that the gaming properties no longer had limits on the number of guests able to be on property at the same time or at gaming tables. All slot machines were restarted, with poker rooms and restaurants once more becoming available at full capacity.

“Guests have found their way back to our three casinos since opening on July 7,” Hofbauer stated. “The Casino Cosmopol and Vegas business area increased net gaming revenues by 65 per cent compared with the same quarter last year when our casinos were completely closed.”

Adding: “We continue to provide our customers with entertaining gaming experiences in a responsible manner, and we report growth in terms of revenue as well as customer bases and online gaming. 

“With all our operations finally open again, more employees back in our offices and high energy in the organisation, it looks positive going forward for the entire company.”

As an optimistic outlook if offered by the company, Hofbauer reflects on the group’s performance through a third quarter which brought not only growth in revenue but also an uptick in both customer base and online games offerings.

Net gaming revenue during the July to September period came in at SEK 1.97bn, an increase of seven per cent from SEK 1.84bn which the group aligned to the elimination of land-based closures. Operating profit through Q3 scored a 31 per cent uptick to close at SEK 696m (2020: SEK 531m).

The aforementioned Casino Cosmopol and Vegas business segment grew 65 per cent during the time frame to contribute revenue of SEK 292m (2020: SEK 177m).

Furthermore, Svenska Spel also reports that its sports and casino business area increased seven per cent during Q3 to SEK 526m (2020: SEK 490m), with the Tur lottery segment dropping two per cent to SEK 1.15bn (2020: SEK 1.18bn).

For the year to date, including the closure of casinos from the end of March 2020 until July 7, 2021, revenue closed at a seven per cent increase to SEK 5.91bn (2020: SEK 5.56bn). Operating profit grew ten per cent to SEK 1.86bn (2020: SEK 1.7bn).

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This will see the group’s gaming properties in Malmö, Gothenburg and Stockholm return to action on Wednesday 7 July, after remaining shuttered for over a year.

“We are very happy to be able to welcome both our guests and employees back again, and we do it in a safe and secure way in accordance with the authorities’ recommendations,” stated Per Jaldung, CEO of Casino Cosmopol.

“Guests call every day and ask when we will open. It feels very good to finally be able to give a date and say welcome on July 7.”

The casinos in Malmö, Gothenburg and Stockholm closed on March 29, 2020, when the spread of COVID-19 infections increased in the country. 

Casino Cosmopol has implemented a number of measures, including extended cleaning and cleaning, distance markings, refurnishing to avoid congestion and training of employees. 

The company says that the reopening will take place “step by step,” with the number of people permitted on the premises and around gaming tables to be limited

“There is a pent-up need in people to be seen for real after over a year with the pandemic. We are happy to offer a meeting place where people can be seen and have fun together,” Jaldung added. 

“We have been ready to start and ready to open on several occasions over the past year, but have then had to back down when the spread of infection has increased again. It is a fantastic feeling that we can now finally open.”

Svenska Spel closed down its Casino Cosmopol property in Sundsvall last year after what was described as a struggle with profitability dating back a number of years. The company highlighted a steadily declining customer base resulting in a lack of sufficient visitation to continue running the business.

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According to figures released by regulator the Spelinspektionen, the three month period saw online betting and gaming and Svenska Spel’s lottery and Vegas slots record increases of 7.7 per cent and 24 per cent to SEK 3.93bn (2020: SEK 3.65bn) and SEK 1.39bn (2020: $1.12bn), respectively.

Charitable lotteries closed out the quarter less than half of a percentage point down at SEK 858m (2020: SEK 861m), with bingo dropping 15.3 per cent to SEK 44m (2020: SEK 52m).

Restaurant casinos closed out the quarter 88.4 per cent down at SEK 6m (2020: SEK 52m), with the Casino Cosmopol land-based casinos remaining closed throughout the quarter and finished with a nil recording.

At the end of the first quarter, the regulator reported that almost 63,000 people were suspended for gambling via Spelpaus.se. This is an increase of a little more than six per cent compared with the previous quarter. By mid-May 2021, that number had increased to almost 64,000.

101 companies had active licenses on the Swedish market in May 2021 (licenses for non-profit purposes not included). 71 of these were licensed for betting and/or commercial gaming online.

Earlier in the year, upon publication of Q4 and FY 2020 figures, H2 Gambling Capital estimated that revenue of between SEK 613m-724m was gained by companies outside the Swedish licensing system during the fourth quarter. This approximation rose to SEK 2.4bn-2.6bn for the year.

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